Overview
Montana security deposit laws are governed by Montana Code Annotated Title 70, Chapter 25, Part 2 (§§ 70-25-201 through 70-25-206). Montana has no deposit limit but requires mandatory move-in/move-out checklists and prohibits nonrefundable fees. Passive's deposit management platform helps landlords manage these mandatory checklists automatically.
Maximum Security Deposit
Montana has no statutory limit on security deposit amounts. Landlords may charge any amount deemed reasonable.
No Nonrefundable Fees
Important: Montana law presumes that any fee or charge for cleaning and damages—no matter how designated—is a security deposit. This means landlords cannot charge "nonrefundable" cleaning fees, move-in fees, or similar charges. All such fees are treated as refundable security deposits.
Return Timeline
Montana has a variable return deadline: (Wyoming follows similar guidelines—see Wyoming security deposit laws.)
- 10 days if no deductions are made (full refund)
- 30 days if deductions apply
Montana law does not allow any exceptions to the 30-day limit, even for long-term leases.
Itemization Requirements
When making deductions, landlords must provide an itemized list of damages and repair costs along with the remaining deposit balance.
Interest Requirements
Montana does not require landlords to pay interest on security deposits or place them in a specific type of account.
Move-In/Move-Out Checklist
Montana has a unique checklist requirement:
- Landlords who collect a security deposit must provide a written statement of the condition of the premises at the beginning of the lease
- This checklist documents the condition of the unit before the tenant moves in
- The checklist is critical for establishing what constitutes damage vs. pre-existing conditions
Allowable Deductions
Under MCA § 70-25-201, landlords may deduct for:
- Unpaid rent
- Damages beyond normal wear and tear
- Cleaning costs to restore the unit
Normal wear and tear cannot be charged to the tenant.
Penalties for Non-Compliance
Montana has significant penalties for violations:
- Failure to provide the required itemized list within 30 days causes the landlord to forfeit all rights to withhold any portion of the deposit
- Tenants may sue for the amount wrongfully withheld
- Courts may award court costs and attorney's fees to the prevailing tenant
Common Compliance Questions
What counts as "normal wear and tear"?
Normal wear and tear includes minor scuffs on walls, slightly worn carpet in high-traffic areas, small nail holes from hanging pictures, and faded paint from sunlight. It does not include large holes in walls, stained or burned carpet, broken fixtures, or damage from pets. When in doubt, document the condition at move-in with dated photos.
How should I document the unit's condition?
Complete a detailed move-in checklist with the tenant, noting existing damage, appliance conditions, and overall cleanliness. Take timestamped photos or video of every room. At move-out, repeat the process. This documentation protects both parties and makes deduction decisions defensible if disputed. Schedule a demo to see how Passive streamlines the checklist process.
Can I deduct for unpaid utility bills?
Only if your lease specifically allows it and the utilities are in your name. If utilities are in the tenant's name, contact the utility company directly—they have their own collection processes. Never make unauthorized deductions, even for amounts you believe the tenant owes.